anyone know what where i can call to find the average property rental prices for farming/farmers?

I have a contract written in the mid 80's for a set amount per year for the usage/farming of a set amount of acreage. And now i'm wondering if the amount paid is way WAY below value, but I cannot find an average amount/acre for non tobacco crops
the local ag agency says that is confidential information, but i know the w -2's that are filed in their stead are not

anyone know what the prices for grain/cotton/soy acreage is or perhaps where i might call to find these things out?

thanks

Billy Baldwin

8/4/2009 7:22:18 PM

i never knew you could rent land to farm on. learn something new every day

8/4/2009 7:36:03 PM

there's probably more rented-by-the-farmer farmland than owned-by-the-farmer farmland (in NC, anyway)

on a small scale, there's a lot more money (less overhead) in leasing farmland than there actually is in farming that land. so the people who are actually making money on farming are leasing a whole bunch of land and tending it. you have to be pretty big operation to turn a decent profit in farming.

anyway, to the OP, i could ask my grandaddy what he's getting for his land down in southern wayne county, but the guy grows tobacco on it, so that info is probably irrelevant to you. good luck

[Edited on August 4, 2009 at 7:55 PM. Reason : adf]

8/4/2009 7:55:12 PM

I'm sure it varies by location. But call Bobby Denning(well not Bobby, he's dead, but look up the business and call) they rent farm land in Wayne Co. off 55 between Newton Grove and Mount Olive.

8/4/2009 7:59:51 PM

WHERE'S BOBBY?

8/4/2009 8:00:53 PM

it'll vary by location for sure

punchmonk's grandma rents out her land

[Edited on August 4, 2009 at 8:34 PM. Reason : in harnett county]

8/4/2009 8:34:26 PM

yeah my aunt and uncle in randolph county rent out their land for farming.

I have nothing of value to contribute to this thread.

8/4/2009 9:05:30 PM

I prefer to deal in hectares.

8/4/2009 9:18:04 PM

Quote :

"there's probably more rented-by-the-farmer farmland than owned-by-the-farmer farmland (in NC, anyway)"

Wow, yet again I learn something new every day. Because every farmer I have ever known has owned their land.

8/4/2009 9:59:21 PM

that's just my perception of it. that is in no way based in any fact whatsoever.

8/4/2009 10:34:36 PM

not saying you are wrong by any means, just interested because we have a considerable amount of prime farmland that is just laying dormant. I never realized we could lease it out.

[Edited on August 4, 2009 at 10:42 PM. Reason : a]

8/4/2009 10:42:05 PM

your county extension agent should be able to give you estimates of what farmland rents for in your area. it can vary widely depending on location and crop. I know of people paying less than 50 dollars an acre for row crop and some paying over 100 for turf land. your area may have a completely different market, though.

8/4/2009 10:48:19 PM

hey, this is a dumb question i know but when you say mid 80's contract do you mean an old contract from the 1980's or a contract to rent land for $80/acre?


If we're talking corn and soybeans on prime topsoil, then $80/acre is a pretty low figure I'd think but i'm not familiar with NC farming, I'm from the midwest. I personally know people that have contracts >$250/acre. I was told of one contract last year signed for $300/acre. This was a 1 year contract at a time when corn was ~$7/bushel and farmers in that area had just come off a good year producing on average 200 bushel/acre. This year I wouldn't expect to see such a high price but also wouldn't expect to see $80/acre, at least for fair market value.

Also it depends on the makeup of your land. Lots of trees, ditches, ruts, creeks, its going to be hard to farm, it might be worth a little less to a farmer. If the soil isn't good, if theres a lot of wash/erosion, if you need to lay lime down, etc....


Now if the land is tended for other uses, that changes things. Hunting ground typically can go for $1-$5/acre which can also be leased on top of renting out to farmers, provided the renter and the hunters don't get into quarrels with eachother

tobacco, cotton, etc. I really dont know prices and going rates. I deal almost exclusively with corn and soybeans.

For cattle pasture I think we rented out land for $40-50/acre but I'm not sure about that.


As for who rents and who farms, everyone does a little of everything. Typically in the midwest if you don't have 2000+ acres of land, you'll need to rent out other farms to support yourself. Small landowners w/no equipment will almost surely rent out to bigger farmers since nowadays you'll spend at least $1M to purchase the equipment necessary to begin farming, not to mention all the work and knowledge that is required plus hiring any farmhands if you can't do everything yourself (it's possible but not fun especially if you have several hundred acres to farm).

Our family no longer farms. We stopped when my grandfather retired over 10 years ago. We strictly cash rent, no share cropping (its a bad idea I wouldn't recommend it). All our land is in the midwest though..

8/5/2009 12:08:34 AM

Quote :

"it'll vary by location for sure punchmonk's grandma rents out her land Edited on August 4, 2009 at 8:34 PM. Reason : in harnett county"

My grandmother's property is way undervalue bc she is renting to "friends of the family." I call them bastards for taking advantage of an older lady and not having enough integrity to give her the value of her land.

Her's is going for $75/acre. Stupid bastards need to be paying her $200. That is the average at the moment.

8/5/2009 10:47:53 AM

In eastern NC, I've seen typical market-driven (as in, no relatives or other special situations involved) prices anywhere from about $50 per acre to around $100 on the high end. Maybe a bit more in very high-yield areas. The price depends typically on the quality of soil, topography and of course location, plus perhaps some past yield records and current demand for agricultural products.
I managed several farming leases in the past, and before about 2003 or so, most prices in NC were around $40 to $70 per acre so most of the increases have been fairly recent.

8/5/2009 11:18:12 AM

My father farmed with his brother and father until his death. They farmed not only the land that they owned, but leased adjoining land to plant. Since my father died, my uncle and grandfather have also died. Without anyone to continue farming, we've leased our land to neighbors who are still farming. I do not know how much the land is leased for, but the profitability of it is absolutely in decline. Many people are opting to sell their farmland instead of leasing it because it's more trouble than it is worth. Without big money crops like tobacco, the farming industry is dying -- even with the tobacco buyout. My grandmother is afraid that we will eventually (but not in her life time) end up having to sell out the family farmland because the lease money will not be enough to pay the property taxes.

8/5/2009 2:43:13 PM

^seriously?

how much are property taxes in this state? that's ridiculous. In missouri we pay about $5k/yr in property taxes and we have over 2k acres

8/5/2009 3:25:17 PM

Quote :

"Her's is going for $75/acre. Stupid bastards need to be paying her $200. That is the average at the moment"

Bullshit, no one is paying $200/acre in NC. You cant make money growing beans and corn around here paying that much an acre. $75/acre is a high price if you are growing anything but peanuts, tobacco, or sweet potatoes. Even those will bring about $100/acre.

8/5/2009 3:51:16 PM

Property taxes aren't that much in this state, but that is how a lot of older people see it because of the declines in lease money. If farmers are having trouble staying in business, there is no way that they can pay profitable leases for land owners.

8/5/2009 4:09:55 PM

Quote :

"My grandmother is afraid that we will eventually (but not in her life time) end up having to sell out the family farmland because the lease money will not be enough to pay the property taxes."

What about growing trees? My girlfriend's family gets a huge sum every 15-20 years when they sell their trees.

Of course, if she's complaining about the price of taxes now I guess a payday 15 years down the road might not be too much help for her.

8/5/2009 4:34:15 PM

We have woodland that is periodically cut for timber. It's not that the property taxes are not affordable, it's just all of the economic changes in farming that turns her into a worry pants.

8/5/2009 4:40:59 PM

^^^^It can be done

July 10 corn is ~$4/bushel (CBOT) if you lock in the prices now and can get 100bushel/acre, that's $400. Average corn yield nowadays is about 120/acre on prime topsoil ground, especially if you have flat riverbottom ground, so 100/acre is not unreasonable at all.


Our renter 2 years ago locked in July 08 prices at ~$6/bushel and had a great year, producing 200 bushel/acre of corn. At 2k acres he grossed over $2M on our farm alone and he farms over 10k acres/year. Farmers made a killing in 2007-2008. And he kept most of that money, we still had one year of a contract with him at $80/acre so he was VERY happy I'm sure. When the contract ended we renewed and asked $250/acre and he happily signed.

8/5/2009 9:53:19 PM

we have some land that is very close to a big turf operation, they pay $135 and get to shave a little off of it every time. Generally it is more like $65 to $85 in our area. Back when land had tobacco and peanut allotment with it prices were different. Unless you have some crazy property taxes in your county you should be able to tread water while your timber grows with farming and hunting leases. Hunting leases are often overlooked and are essentially no touch, the trees keep growing and the farmer is feeding one less deer.

to the OP, the local ag agent may or may not be a shithead, I have seen it both kinds. if you want some local info go to the store or just pull up at a big farm equipment shed and start talking.

[Edited on August 5, 2009 at 11:27 PM. Reason : to the OP, the local ag agent may or may not be a shithead, I have seen it both kinds. ]

8/5/2009 11:25:26 PM